SHARES in brewer and community pub firm Burtonwood leapt more than 25 per cent yesterday after the Warrington-based group announced it was in talks with an un-named suitor.

The company said it was in preliminary discussions with a third party that might lead to an offer being made.

After announcing the news to the stock market, Burtonwood's shares soared 25.75 per cent, or 99p, to 483.5p. The rise sent its market capitalisation spiralling to more than é100m.

In the statement, Burtonwood said the board had noted the recent movement in the company's share price and confirmed it had received an approach.

"A further announcement will be made in due course," said the group.

Two weeks ago, Burtonwood showed how its focus on traditional local pubs was paying off as it posted a nine per cent rise in half-year profits to é5.1m.

Challenging

Burtonwood said the results had been achieved despite "challenging circumstances", with poor summer weather compared to 2003.

The group operates 460 pubs, most of which are in the north, and plans to buy more. Its beers include Burtonwood Top Hat Premium Bitter and James Forshaw's Bitter.

Its origins can be traced back to 1867, when James and Jane Forshaw bought land in Burtonwood and opened a small brewery supplying local free houses, farmers and private landowners.

Burtonwood became a public company in 1964 to raise money for expansion. The founding family retains ties with the group although the day-to-day running of the business is led by managing director Lynne D'Arcy, the new chairman of the CBI in the north west.

Recently, it dropped "brewery" from its title after selling its stake in the Thomas Hardy Burtonwood Brewery.